Tesco has signed an eight-year software licensing and services deal with Microsoft aimed at helping improve the retail giant’s global productivity and international growth. As part of the agreement, Microsoft will provide the latest versions of its products and services to Tesco’s head offices, stores, distribution and datacentres, including Windows, Office, SharePoint, Exchange, Lync, System Center, BizTalk and SQLServer. The deal also includes consultancy services under Microsoft’s Enterprise Strategy programme.

Tesco plans to create a new global collaboration platform by deploying SharePoint, Exchange and Lync as part of its strategy to grow internationally, expanding its retail services, including banking, online and mobile. “Putting innovative technology in the hands of its customers, staff and suppliers will allow Tesco to get closer to its goals of multi-channel retailing and meeting people’s needs as they change,” said Tesco in a statement. Bill Gonzalez, general manager for worldwide distribution and services sector at Microsoft, said the agreement will change the way Tesco connects internally and with its customers.

But is it a good idea to sign such a long term agreement for desk-based versions of software in the light of the developing Cloud market, which includes Microsoft’s own Office 365 Cloud offering?

Merry Christmas to all our clients and to anyone involved in IT Procurement. Let’s hope 2010 is a better year for businesses everywhere. Budget cuts and financial squeezes have affected everyone this year and many are still struggling. So let’s all be positive that 2010 brings with it new found optimism and a genuine economic recovery. We have saved a lot of money for our clients this year and we plan on helping even more businesses save even more in 2010. As the TESCO adverts say, ‘every little helps’.